It was confirmed in today’s pre-budget report that Feed-in tariffs (FIT’s) will not be subject income tax.
This comes as a relief to the industry and clears some of the muddy waters. It also shows the government”s timetable for FIT introduction of April 2010 is still on track despite the delayed announcement on their final values.
The key environmental issues for individuals addressed in the PBR are:
- Confirming that the income received by those who generate small-scale renewable electricity for their home through the clean energy cash-back scheme (ie feed in tariffs), worth on average £900 in 2010, will be tax free;
- £200 million to improve energy efficiency and tackle fuel poverty by: offering £400 for up to 125,000 households to upgrade their old boilers to the latest efficient models with a greener boiler incentive; and providing extra resources for Warm Front to help 75,000 of the most vulnerable households with heating and insulation;
- Helping one million more vulnerable households with discounts on their energy bills by increasing support provided by energy companies from £150 million to £300 million by 2013-14; and
- Increasing support for low-carbon vehicles through exempting electric cars from company car tax from 2010, introducing a 100% first-year allowance for electric vans, and investing a further £30 million on low-carbon transport projects
Categorised in: Industry News